Hovnanian Enterprises (Hovnanian Enterprises) ROCE % : 8.87% (As of Jan. 2024)

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What is Hovnanian Enterprises ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hovnanian Enterprises's annualized ROCE % for the quarter that ended in Jan. 2024 was 8.87%.

Hovnanian Enterprises ROCE % Historical Data

The historical data trend for Hovnanian Enterprises's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Hovnanian Enterprises ROCE % Chart

Hovnanian Enterprises Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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3.20

9.82

15.86

19.29

15.46

Hovnanian Enterprises Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															6.65	12.20	17.23	27.20	8.87

Hovnanian Enterprises ROCE % Calculation

Hovnanian Enterprises's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	310.033	/	( ( (2562.03 - 549.554)	+	(2492.94 - 495.686) )	/ 2 )
	=	310.033	/	( (2012.476	+	1997.254)	/ 2 )
	=	310.033	/	2004.865
	=	15.46 %

Hovnanian Enterprises's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	172.056	/	( ( (2492.94 - 495.686)	+	(2340.378 - 456.06) )	/ 2 )
	=	172.056	/	( ( 1997.254	+	1884.318 )	/ 2 )
	=	172.056	/	1940.786
	=	8.87 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Hovnanian Enterprises (OTCPK:HOVVB) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hovnanian Enterprises ROCE % Related Terms

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Hovnanian Enterprises (Hovnanian Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Hovnanian Enterprises Inc (OTCPK:HOVVB) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HOV:USA HOVNP.PFD:USA HO3A:Germany

Address

90 Matawan Road, Fifth Floor, Matawan, NJ, USA, 07747

Website

https://www.khov.com

Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations . The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments; Northeast which includes Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia; Southeast which includes Florida, Georgia and South Carolina; and West which includes Arizona, California and Texas. The firm generates maximum revenue from West Segment.